GST Council meet to take call on tax rate cut on September 20

Amid clamour for rate cut by various industries, all powerful GST Council will hold a crucial meeting on September 20 to decide on tax moderation, keeping in mind revenue position and need to boost sagging ecomic growth.

GST Council, heed by Union Finance Minister Nirmala Sitharaman and comprising representatives of all states and Union Territories (UTs), will have its 37th meeting in Goa in backdrop of ecomic growth hitting a six-year low of 5 per cent for first quarter of current fiscal.

re have been demands pouring in from various sectors - from biscuits to automobiles and FMCG to hotels - to reduce tax rates in wake of ecomic slowdown.

argument propagated has been to boost consumption and domestic demand by reducing Goods and Services Tax (GST) rates furr.

However, many of states are of view that it would t be tax prudent to allow GST rate reduction at this st, as compensation cess fund, which is utilised to compensate states under GST Act in case revenue is below targeted growth rate, has turned negative.

Meanwhile, according to sources, GST Council's Fitment Committee, which comprises revenue officials of both Centre and States, has rejected demands for a cut in tax rate on items ranging from biscuits to car, owing to tight revenue position.

GST Council may consider introduction of a special composition scheme for taxpayers supplying brick kilns, sand mining activities and stone crushers with an increased rate, sources said.

RE | Finance Minister Nirmala Sitharaman Unveils Reforms To Boost Exports

It is expected to discuss amendments in GST Laws to accommodate creation of Jammu & Kashmir and Lakh as UTs and will also discuss proposal moved by Kerala on introducing e-way bill system for movement of gold and precious stones, sources said.

It is likely to deliberate on proposal of linking new GST registration with Ahar and take quarterly review of cases at National Anti-profiteering Authority (NAA), sources ded.

Fitment panel in its report, which will be placed before GST Council, has some good news for hotel industry as it has recommended raising tariff ceiling to up to Rs 12,000 per night under 18 per cent GST slab.

At present, 18 per cent GST rate is applicable for hotel tariff up to Rs 7,500 per night.

committee also rejected telecom ministry's proposal to reduce GST rate for telecom services from present 18 per cent to 12 per cent, sources said.

It was also decided t to tinker with present GST structure for biscuits, bakery products, breakfast cereals, fruits and vegetables, mineral water, rey-to-eat packd items, and several or food products.

committee rejected proposal of reduction in GST rate on sale of cruise tickets, which attracts GST of 18 per cent, sources ded. 

RE | Nirmala Sitharaman Anunces Rise In Industrial& Ecomic Growth Again

RE | Nirmala Sitharaman Anunces Measures To Boost Real Estate Sector